US Tax Deadline on Tuesday May Affect Bitcoin Liquidity

WHY IT MATTERS

When the government requires people to pay taxes, some people sell their investments — including Bitcoin — to get the cash they need. Think of it like a neighborhood garage sale: if many people need cash at the same time, more items go up for sale, which can temporarily push prices down. "Liquidity" refers to how easily an asset can be bought or sold without significantly affecting its price. When lots of people are selling and fewer are buying, liquidity can decrease, meaning prices might move more dramatically than usual. Tax deadlines are one of those recurring events that crypto newcomers should be aware of as a factor that can temporarily influence market activity.